How Do I Cancel My Home Insurance in Canada?

When you buy a home, you’re making one of the most important investments of your life. This investment comes with a number of recurring costs, such as home insurance. Among other things, home insurance protects you against major financial losses. But it is required by mortgage lenders for houses that are not fully paid for.

Here’s everything you need to know to cancel your contract under the best possible conditions. In Canada, there are specific rules for cancelling home insurance, depending on your province. Sometimes it makes sense to cancel your home insurance and switch to a better insurer. In short, read on if you’re thinking of cancelling your home insurance in the near future.

Why Cancel or Change Your Home Insurance?

Here are some of the reasons why you may want to cancel your home insurance policy. The most common reasons for cancellation are as follows:

Moving
Increase in insurance premium
Rental
Non-mandatory insurance

Cancelling your home insurance when you move

If you’re moving, you’ll need to find a home insurance policy that applies to your new home. In some cases, you’ll need to cancel your home insurance policy to find another insurer that offers better prices or more coverage for your new home. Request insurance quotes from several insurance companies, or use our home insurance comparison tool.

Cancel your home insurance when the premium increases

If the premium on your insurance policy goes up, you could try negotiating, or alternatively, cancel your home insurance. Unfortunately, you could end up paying a lot more for your home insurance over time, depending on the real estate market or other factors. In particular, claims in the insurance market as a whole. As a result, some owners cancel their insurance policy, while others change insurers in this situation.

To compare home insurance premiums, you can contact an insurance broker (who will have access to several insurers) or use our tool.

Cancel your homeowner’s insurance and change to another type of insurance

There are several types of home insurance: landlord’s insurance, homeowner’s insurance, condo insurance, tenant’s insurance, etc. You don’t need homeowner’s insurance if you’ve decided to rent an apartment instead of owning a house. In this case, you can change your type of insurance to tenant’s insurance. The latter offers similar protection to home insurance, but without the same level of coverage (e.g., building insurance is excluded).

Cancel your home insurance when it is no longer required

Once you’ve paid off the mortgage on your home, home insurance is no longer mandatory. This means you can cancel your insurance once you’ve paid off your mortgage.

That said, living without home insurance isn’t always a wise option, as bad weather and unexpected damage can still happen. This could be catastrophic in the event of a claim. In short, think carefully if this is the option you choose.

Finally, if you had combined your home and auto insurance, your auto insurance premium will increase when you cancel your home insurance.

When Can You Cancel Your Home Insurance?

You can cancel your home insurance at any time. But make sure you understand your insurer’s cancellation policy. Please note the following points when reading the terms of your insurance contract.

Termination during the term of the contract

You can cancel your insurance before the renewal or expiry date if you are not satisfied with it, or if you move house. However, don’t forget that breaking your contract may entail a penalty, in the form of fees to be paid. Check the conditions for early termination in the clauses of your insurance contract.

Termination on expiry date (non-renewal)

When your contract reaches its expiry or renewal date, it’s the best time to cancel your home insurance policy, because you won’t have to pay any penalties.

Termination during the grace period

During your right of cancellation, also known as your policy’s grace period, insurance providers allow you to cancel your policy without penalty. Generally, this grace period varies between 10 and 15 days following the effective date of your insurance policy.

How Do I Cancel My Home Insurance?

Follow these steps to cancel your home insurance:

If your insurance policy is up for renewal, you will receive a Review from your insurer informing you of the expiry date of your policy. This Review will be sent to you at least 30 days before expiration.
Compare home insurance quotes online or contact an insurance broker like ClicAssure to choose and purchase a home insurance policy with a new insurer. This can be a time-consuming process, so do your research before canceling your coverage.
Contact your insurer by phone or meet in person. Find out about the requirements for cancelling the policy, such as penalties or fees. These are also mentioned in the causes of your insurance contract.
Inform your insurer that you will be cancelling your insurance policy. Some insurers may require a written notice, such as a letter of cancellation. In addition, it is essential that you note the termination date of your insurance policy.
Ask your insurer to refund the difference if you have paid your full premium for the year.
Ask your insurer for written confirmation of your cancellation to make the transaction official and keep a record of it in your files.

Bottom Line

In short, you can cancel your home insurance policy for any number of reasons, at any time. However, check your insurance contract or call your insurance company, as you may have to pay a penalty.

If you want to switch your home insurance to another insurer, request insurance quotes from several companies or use our home insurance comparison tool.

How do I cancel a home insurance policy?

To cancel your home insurance, first contact your insurer. Find out about the requirements for cancelling your insurance policy and the fees you’ll have to pay, depending on your expiry date. Some insurance companies require written notice, also known as a Notice of Cancellation.

Can I cancel my home insurance at any time?

Of course, you can cancel your home insurance at any time. However, check your insurance contract or call your insurance company to find out about cancellation requirements. Then send your Notice of Cancellation.

How do you stop your home insurance?

The easiest way to cancel your home insurance policy is to call your insurer. Usually, you won’t have to pay a fee if you cancel your policy on its expiry date. If you want to cancel before the expiry date, you will have to pay a penalty.

Can I cancel my home insurance policy?

Yes. You can cancel your home insurance policy at any time, for any number of reasons. However, call your insurer to check cancellation requirements and fees, if any.